From Yahoo Finance: 2025-06-09 13:02:00

If you’re new to investing, stock market terms can seem overwhelming. However, many are simpler than they appear, and learning them can boost your confidence. Stock market volatility isn’t always negative, it simply measures how much a stock fluctuates. Diversification, spreading investments, and understanding your investment horizon are key strategies for managing risk.

The power of compounding returns can lead to exponential growth over time. Dollar-cost averaging involves investing a consistent amount at regular intervals. Beginners should understand capital gains, which are profits made from investments. Short-term and long-term capital gains are taxed differently, so it’s important to know your cost basis. Understanding these terms is crucial for successful investing.



Read more at Yahoo Finance: 6 Stock Market Terms That’ll Melt Your Brain (and What They Mean)